The commodities “supercycle” is dead. If anyone was still in doubt about whether the era of ever-rising prices driven by rapid Chinese growth was over, events of the past week have surely dispelled it.
The dollar rally after the Federal Reserve’s hints about tapering its “quantitative easing” programme, together with fears about a liquidity crunch in China, have sent a ripple of fear through the commodities industry………………………………………..Full Article: Source

Another tough day at the office for metals continues to fuel questions about whether or not the “commodity super-cycle” over the last decade is coming to an end. Driven largely by Chinese appetite for commodities, the 2000s saw a commodities boom with both precious and base metals prices rising to record highs.
With sharp drops across the metals board in the last three months, some analysts have begun to believe this commodities boom, dubbed the “commodities super-cycle,” is at an end. John Turner, partner and head of Global Mining Group with international business law firm Fasken Martineau, does not believe the super-cycle is over, but simply stalled………………………………………..Full Article: Source

If you believe real global growth will improve, look for bargains in commodities and cyclical companies, NYU finance professor Aswath Damodaran said Wednesday.
“I think in a sense you’ve got to play the cycles, commodity-price cycles and economic cycles, so I would go to commodity companies and cyclical companies,” he said. “Not all of them are cheap, but I think your best chance of finding bargains are in those segments.” Damodaran said that he had bought stock in Petrobras as a play on Brazil and oil………………………………………..Full Article: Source

Oil is one of the most important commodities in our global economy. Similar to any other commodity traded in the free market, oil prices fluctuate over the time. Even more, the price of oil changes more frequently compared to other commodities. Moreover, the oil price impacts the vigor of the world economy.
Higher oil prices since 1999 contributed to the global economic decline in the year 2000 to 2001 and are slowing the current cyclical upturn. Due to the effect of oil price on world economy, it is important to study the factors impacting the oil price………………………………………..Full Article: Source

Oil’s fall below the $100 a barrel favoured by OPEC exposes the deepening divide between countries in the group better able to cope with a lower price and those most hurt by it, making collective action to halt any further price slide harder. The price of oil dropped below $100 this week from a 2013 high of $119.17 in February, pressured by lacklustre demand and ample supply.
While a sustained sub-$100 Brent is bearable for Saudi Arabia, it puts a strain on others such as Iran. There is no immediate prospect of the Organization of the Petroleum Exporting Countries cutting supply to boost the price, not least because top producer Saudi Arabia — which would lead any cutback — has financial reserves that will help it endure oil at $80 or $90………………………………………..Full Article: Source

There is no need for OPEC to hold an emergency meeting over declining oil prices, UAE Oil Minister Suhail al-Mazrouei said Wednesday. “Oil price fluctuation is natural. The current price is fair and acceptable to producers and does not deter required oil industry investment in producing countries,” Mazrouei said at a media briefing at the ministry in Abu Dhabi, the official WAM news agency said.
“At its May ministerial meeting in Vienna, OPEC set its production target at 30 million b/d until the end of this year. I do not see the need to adjust the level of production. It provides an adequate supply of oil to the market, in balance with global demand for OPEC oil,” he said………………………………………..Full Article: Source

Renewable power will eclipse natural gas and nuclear as a source of electricity by 2016, with the sector expected to surge by 40 percent in the next five years, the International Energy Agency said Wednesday.
Even as governments curtail public subsidies and tax credits for hydro, wind and solar projects, the IEA study cited renewables as “the fastest-growing power-generation sector” and said it expects them to comprise a quarter of the world’s power mix by 2018………………………………………..Full Article: Source

Renewables like solar and wind power represent the fastest-growing source of energy generation and will make up a quarter of the global power mix by 2018, the International Energy Agency IEA says.
The IEA said that in 2016 renewable energy will overtake natural gas as a power source and will be twice that of nuclear, and second only to coal as a source of power. The growth of renewables has been bolstered by increased competitiveness with conventional energy………………………………………..Full Article: Source

Gold prices have dropped to almost a three-year low after positive news on the American economy increased the chances of an end to the US Federal Reserve’s stimulus policies. Figures released overnight showed US house prices had their biggest rise in seven years, while consumer confidence jumped.
There was also good news on the manufacturing sector. Spot gold has tumbled more than eight per cent since last week, when Federal Reserve chairman Ben Bernanke outlined a plan to gradually wind back aggressive bond-buying policies………………………………………..Full Article: Source

Gold is braced for more pain after sliding 26 per cent so far this year, with chart patterns showing the precious metal’s latest fall exposing prices to deeper losses. Spot gold plummeted to its lowest in nearly 3 years on Wednesday at $1,223.54 an ounce, putting the market on track for its biggest quarterly loss on record.
Gold’s technical picture has looked weak since prices crashed more than $200 in just two days in April after long-term support just above $1,520 - where the lows of September 2011, December 2011 and May 2012 are located - gave way………………………………………..Full Article: Source

Recent writedowns in the gold mining sector are a non-cash, non-credit event, said Fitch Ratings, as “companies have already announced changes to capital expenditure plans and/or operations associated with the gold in gold prices and lower valuation multiples in the sector.”
Nevertheless, in an article published Tuesday, Fitch cautioned that lower gold prices “may cause some companies to write down the value of their assets when they report annual results.”……………………………………….Full Article: Source

ABN Amro on Wednesday lowered its 2013 and 2014 year-end price forecasts for precious metals on expectations of softening prices and liquidation from investors due to lack of gains. “We expect investors to continue to liquidate positions this year also because technical indicators have turned negative on all precious metals,” ABN Amro analyst Georgette Boele said in a note.
“There is no reason for investors to hold precious metals as the outlook for capital gains are dim and they pay no income.” The bank lowered its 2013 year-end gold forecast to US$1,100 an ounce from US$1,300 and 2014 year-end price to US$900 from US$1,000………………………………………..Full Article: Source

Gold and silver miners are beginning to shut down money-losing mines. And if prices do not recover soon, many more are poised to close in the months ahead, in Canada and elsewhere.
A vast portion of the gold industry is struggling to make any money at the current price of US$1,230 an ounce, according to analysts. While precious metal prices are plunging, costs are not falling nearly as fast………………………………………..Full Article: Source

The life cycle of most things, no matter what it is (living, product, service, ideas etc…), go through four stages and the stock market is no different. Those who recently gave in and bought gold, silver, mining stocks and coins will be entering this stage of the market in complete denial. They still think this is a pullback and a recovery should be just around the corner.
Well the good news is a recovery bounce should be nearing, but if technical analysis, market sentiment and the stages theory are correct, then a bounce is all it will be, followed by years of lower prices and dormancy………………………………………..Full Article: Source

The Australian government’s commodities forecasting unit has upgraded the amount of iron ore it expects the country to export this year but downgraded its prediction for metallurgical coal exports in its latest quarterly report released Wednesday.
Canberra-based Bureau of Resources and Energy Economics now expects Australian iron ore exports to reach 571 million mt in 2013, compared with a forecast of 554 million mt in its March report. This would be 16% higher than the 494 million mt of iron ore exported from Australia in 2012, due largely to increased production from Rio Tinto, BHP Billiton and Fortescue Metals Group………………………………………..Full Article: Source

Standard & Poor’s has revised its 2013 metals price outlook, predicting generally favorable copper and iron ore prices to continue in 2013 and 2014, while aluminium and nickel prices will be constrained, it said in a report Wednesday.
S&P has maintained its price assumption of $120/mt for iron ore in 2013 and $110/mt in 2014. “Despite higher average prices of about $140/mt so far in 2013, we factor into our forecast new capacity in the second half of 2013 and 2014 that could exert some pricing pressure,” the report said………………………………………..Full Article: Source

The bond market rout is sending shock waves through the corporate credit market, but mining companies are taking a particularly hard beating as commodity prices tumble.
Corporate and government bond prices have fallen sharply since the Federal Reserve last week said it could pull back on its extraordinary bond buying program. Now commodity prices are extending their slide, creating an added level of anxiety among investors in bonds issued by some mining companies………………………………………..Full Article: Source

Since the beginning of the year, gold has been moving deep into negative territory, plunging 26% so far. Gold has broken its major support level of $1250 per ounce, suggesting a bearish outlook for the yellow metal. This marks the biggest annual decline in more than three decades.
Gold gained immense popularity over the past twelve years, but now that a QE3 exit appears to be on the horizon, it could be a game changer for bullion. The worries over the early end of the Fed’s stimulus program as a result of an improving economy is keeping the metal under pressure, tempering its safe haven appeal………………………………………..Full Article: Source

The difference in usage patterns of equity and fixed income ETFs is driven by familiarity with the products, the array of available products and investor’s views on which asset classes and areas of the market they want to be allocating new assets to or reducing their exposure.
The very first ETF was listed just over 23 years ago in Canada on 9 March 1990 on an equity index. Ten years later the very first fixed income ETF was listed on 20 November 2000 in Canada………………………………………..Full Article: Source

The London Stock Exchange may look to develop more commodity futures contracts after launching a durum wheat contract earlier this year, an exchange spokesman said on Wednesday.
“Expanding our range of commodity derivatives is something we’re considering, but we haven’t made announcements on any products beyond our durum wheat futures,” a spokesman said. The exchange launched a contract for durum wheat in January and volumes so far have been light………………………………………..Full Article: Source

It’s no secret that gaining access to China was the primary reason Hong Kong Exchanges & Clearing (HKEx) bought the London Metal Exchange, but the vision is a long way from reality.
As is usual with these deals, the theory looks sound. Putting together the venerable LME with a dynamic Asian company on China’s doorstep looks like a perfect recipe to enter the world’s largest metals market, which so far has been largely closed to foreign traders and investors………………………………………..Full Article: Source

So much for the gains analysts were counting on for emerging-market currencies this year. As this month’s market rout pushed currencies like the Turkish lira, Indian rupee, and Brazilian real to multi-year or all-time lows against the dollar, analysts have been downgrading their forecasts for many of these currencies.
The shift is a stark one: Many emerging-market currencies have already weakened past their mid-year forecasts from various banks. And now, some analysts expect significantly more losses by the end of the year………………………………………..Full Article: Source

Wali-ul-Maroof Matin, currently the Chairman and Managing Director of the Bangladesh based Alliance Capital Asset Management Limited, is setting up a commodities exchange in Burma that will be open to international investors, according to a company statement.
“Seeing the opportunity I took the initiative six months ago to run the commercial operations for the commodities exchange in Burma for at least nine months,” said Matin. Burma’s commerce ministry has recently approved the project. A commodity exchange is a marketplace where various commodities and derivatives products are traded………………………………………..Full Article: Source

Wali-ul-Maroof Matin, currently the Chairman and Managing Director of the Bangladesh based Alliance Capital Asset Management Limited, is setting up a commodities exchange in Burma that will be open to international investors, according to a company statement.
“Seeing the opportunity I took the initiative six months ago to run the commercial operations for the commodities exchange in Burma for at least nine months,” said Matin. Burma’s commerce ministry has recently approved the project. A commodity exchange is a marketplace where various commodities and derivatives products are traded………………………………………..Full Article: Source

Marc Rich, the trader known as the “King of Commodities” whose controversial 2001 pardon by President Bill Clinton just hours before he left office unleashed a political firestorm of criticism in 2001, died on Wednesday. He was 78.
Rich died in Switzerland, where he lived, according to his Israel-based spokesman Avner Azulay. He did not give further details, but said Rich would be buried in Israel on Thursday………………………………………..Full Article: Source

President Barack Obama’s climate plan, unveiled this week, may boost regional schemes to cut greenhouse gas emissions, known as cap and trade, four years after the United States failed to pass legislation for a nationwide programme.
Unlike Europe, the United States has no national cap and trade scheme to combat carbon emissions. The U.S. Congress considered but ultimately failed to bring in a national scheme in a climate bill which stalled in the Senate in 2009. After this failure, there is no hope of a repeated attempt any time soon. But Obama’s new climate plan could enhance the regional cap and trade markets and cement their future………………………………………..Full Article: Source

China’s pilot emissions trading scheme was launched on June 18 in Shenzhen. Five other pilots – Beijing, Tianjin, Shanghai, Hubei and Guangdong – are also expected to be launched this year. Only Chongqing is yet to finalise an opening date. All face great problems: they are market systems in a non-market economy. But can those challenges be overcome?
Previously, China has relied primarily on government regulations or interventions to control its carbon emissions. There were bad memories of such interventions: towards the end of the 11th Five Year Plan, some local governments took the extreme measure of cutting off power supply to fulfil their emissions reduction targets………………………………………..Full Article: Source